CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We lower our 12-month target $34 to $270, reflecting a 2024 P/E of 13.3x vs. three- and five-year averages of 12.8x and 12.2x, respectively. We raise our 2023 adj. EPS view by $0.18 to $18.36 and raise 2024’s by $0.35 to $20.28. Q3 adj. EPS of $3.91 vs. $3.91 missed consensus by $0.06. The adj. EBITDA margin fell to 17.8% from 19.4% in Q3 2022, negatively impacted by weaker results from its Valesco joint venture, which the company expects will continue posing headwinds in the coming quarters. Accordingly, HCA’s 2023 adj. EBITDA margin guidance midpoint dropped to 19.45% from 19.60%. We think this somewhat overshadowed what was otherwise a strong quarter in terms of underlying hospital volume growth and containment of inflationary wage costs. On a same-facility basis, equivalent admissions rose 4.1% Y/Y, while inpatient surgeries and outpatient surgeries rose 1.6% and 0.9%, respectively. HCA repurchased $1.14B in shares during the quarter, leaving $1.685B in its authorization. Shares yield 1.1%, above peers.